Many Australian couples take out life insurance to help protect the life they’ve built together. Whether you’re married or not, have children or are just sharing financial responsibilities, life insurance can help give you certainty and security if the unexpected happens.
In this article we answer some of the most common questions couples ask when considering life insurance.
What is life insurance?
Life insurance helps you protect your loved ones financially, when you’re no longer around. You pay regular monthly or fortnightly premiums to your insurer, and in exchange your family receive a cash payout when you die. Your partner or family can use this money to help cover everyday living costs, mortgage repayments, debt, childcare or anything else they want.
Some life insurance policies also provide a payout if you’re diagnosed with a terminal illness.
At Direct Cover we make life insurance straightforward – to help you protect the life you’ve built. We offer cover to Australian residents aged 18-70 and you can leave your loved ones up to $1.5 million, depending on your age when you apply1. Our useful article ‘What is Life Insurance’ tells you more about how it all works.
Do we need it as a couple?
If you’re in a relationship, taking out life insurance can help protect your partner if the worst should happen. It can make good sense for both people to take out cover so both parties are protected financially.
You might want to consider life insurance as a couple if you:
- Share a mortgage, rent, or other debts
- Rely on one or both incomes to cover living costs
- Have children or plan to have children
- Would struggle financially if one partner passed away
How can I make sure my partner receives my life insurance?
To ensure your partner receives the benefit amount after you pass away, it’s important to:
- Nominate your partner as the beneficiary when you take out the policy
- Keep your beneficiary details up to date, especially if your circumstances change
At Direct Cover our claims process is designed to be plain and simple, and our Australian-based claims specialists are on hand to help your loved ones.
Do we need to be married to get life cover?
In Australia, both married and unmarried couples can take out life insurance and name their partner as the beneficiary of the payout. Life insurance isn’t limited by marital status. What matters is how your finances and responsibilities are shared.
What happens if we get divorced or break up?
Life circumstances can change and your life insurance can adapt with you. With Direct Cover Life Insurance you can easily update or change your nominated beneficiaries by giving us a call or email. We’re always here to help.
We have children – do we need life insurance?
If you have children, life insurance could be even more important – for both married and unmarried couples. Life insurance could help to:
- Cover everyday living costs if one parent passes away
- Pay for childcare and education costs
- Simply reduce the financial pressure on the surviving parent
Even if only one parent earns an income, both parents’ roles usually have financial value. So many couples choose to both hold their own life insurance policy.
If you want the best in life for your children, even when you’re no longer around to see it, then family insurance could be a good idea. Our article about ‘Family life insurance’ will help you find out more.
How much life cover do we need?
The amount of life cover you need depends on your own unique situation. You need to think about the costs your loved ones will still need to cover if you were no longer here. But you can offset these against any savings or investments you might have. When calculating how big a payout you’d ideally want to leave, it’s a good idea to consider:
- Outstanding debts such as a mortgage, loans and credit cards
- Ongoing living expenses
- Childcare and education costs
- How long your partner would need financial support for
Can I get single life insurance?
Yes. You don’t have to have a partner to take out life insurance. If you have anyone who depends on you financially, it could make good sense to have cover.
If you’d like to find out more about our straightforward Direct Cover Life Insurance, feel free to explore our FAQs or you can contact us directly on 1800 830 576.